EUR/JPY Price Analysis: Eight-year high above 147.00 kept bulls from testing 149.00
- EUR/JPY retraces from weekly highs around 147.30s, on risk-aversion, due to BoJ’s intervention woes.
- Near-term, the EUR/JPY is neutral biased, though a break above 147.30 will expose 148.00 and beyond; otherwise, a fall under 146.00 is on the cards.
The EUR/JPY consolidates nearby weekly highs, around the 146.80 mark, retracing from YTD highs at 147.29, due to risk-aversion and high US Treasury yields advancing sharply, while Fed hawkish commentary on Thursday, spooked investors as the Federal Reserve gets ready to lift rates to 4%. Therefore, the EUR/JPY is trading at 146.87, below its opening price by a minuscule 0.03%.
EUR/JPY Price Forecast
The EUR/JPY daily chart portrays the pair as upward biased. Worth noting, the cross-currency pair, is reange-bound, trading in the upper 146.00-14730 area, unable to test the 148.00 mark. Of note, EUR buyers were unable to rally to 148.00, probably on fears that the Bank of Japan (BoJ) could intervene in the market, as speculations mounted that on Thursday, they did it. Nevertheless, if those rumors fade, a test to 148.00 is likely, as EUR/JPY buyer eye 150.00.
Short term, the EUR/JPY one-hour chart suggests the pair as range-bound, supported by the confluence of the daily pivot point and the 20-Exponential Moving Average (EMA) at 146.84. Underneath the latter, the 50-EMA flat-slope suggests the pair will remain volatile around the 146.80-147.30 area, but the Relative Strength Index (RSI) aiming lower, about to enter the bearish territory, could open the door for a retest of October 19 lows at 146.07, followed by the October 18, weekly low of 145.81.
On the other hand, if the cross clears the YTDhigh at 147.30, the next resistance is 147.39. Once broken, the following supply areas would be the S2 pivot level at 147.87, followed by the S3 pivot point at 148.44.
EUR/JPY Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
